Strategic Evolution : The Changing Face of US Development Finance in World Trade

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Original languageEnglish
Pages (from-to)909-932
Journal / PublicationJournal of World Trade
Issue number6
Publication statusPublished - Dec 2023


This article presents a comprehensive analysis of the strategic transformation in US development finance, particularly highlighting the shift from the Overseas Private Investment Corporation (OPIC) to the Development Finance Corporation (DFC). It delves into the geopolitical and economic objectives driving this transition, reflecting the broader US strategy to counter China’s Belt and Road Initiative (BRI). The article employs a neo-realistic theoretical framework, supplemented by elements of development and legal theory, to provide a multifaceted understanding of these global trade and investment dynamics. It evaluates the DFC’s operational strategy and commitment to facilitating private investment in developing nations while averting potential debt traps and sovereignty risks. The study further examines the role of International Investment Agreements (IIAs) in safeguarding DFC-backed projects and reviews their substantive rules and dispute resolution methods. The article concludes by positing the DFC as a more sustainable and transparent alternative to the BRI, offering potential benefits for both developing nations and US geopolitical interests. © 2023 Kluwer Law International BV, The Netherlands

Research Area(s)

  • Political risk insurance, financial development, investment financing, Investment Incentive Agreements, International Development Finance Corporation, Belt and Road Initiative, trade policy programs